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Evolution of Management Theories

In: Business and Management

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The Evolution of Management Theories

Management Theories
Industrial Revolution (1700’s – 1800’s)
- Moved from Agrarian to Manufacturing Society - Adam Smith – The Wealth of Nations - Division of labor (pin factory example)

Scientific Management (1890’s – 1930’s)
- Frederick Taylor - Time & Motion Studies - “Fair day’s pay for a fair day’s work”

Management Theories
Bureaucracy – Max Weber (1930’s – 1950’s)
- All activities follow the organizational hierarchy - Strong lines of authority & control - Formal selection, rules & regulations - Only qualified persons are employed (no nepotism)

Management Theories
Humanistic Management (1930’s – 1970’s)
Hawthorne Studies - Elton Mayo – Father of Human Relations - Western Electric Plant in Hawthorne, IL - “”Hawthorne Effect”; “Spotlight Effect”

Management Theories
POSDCORB (1937) - Luther Gulick Management by Objectives (1954)
- Peter Drucker - Goals are set for employee to achieve - People end up working for themselves

Theory X & Theory Y (1960)
- Douglas McGregor

Theory X & Theory Y
Theory X People do not really want to work. They are self-interested and prefer leisure over work. If managers relax, sloppiness sets in. Theory Y Workers find work enjoyable & satisfying “Work is Play” Workers will exercise self-direction and self-control. Workers can solve problems creatively.

Theory X
People do not really want to work. They are self-interested and prefer leisure over work. Managers have to structure work and give workers well specified tasks. If managers relax, sloppiness sets in. Most people prefer to be directed. They do not really want to carry the burden of responsibility. Workers have little ambition and prefer security

Theory Y
Workers find work enjoyable & satisfying “Work is Play” Workers will exercise self-direction and self-control. Workers will seek the intrinsic rewards

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